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September 20, 2019

Executive Compensation at Kaiser Health

by Anne Paddock

Kaiser Health is one of many terms (Kaiser, Kaiser Permanente, etc) that refers to one of the nation’s largest not-for-profit health care insurers and providers with more than 12 million members (primarily in California but also in Hawaii, Colorado, Georgia, Oregon, Washington, Virginia, Maryland, and the District of Columbia). With 39 hospitals, more than 700 medical offices, and about 220,000 employees, Kaiser Health is considered one of the leaders in the industry.

Kaiser Health is comprised of the health plan (Kaiser Foundation Health Plan, Inc), the hospitals (Kaiser Foundation Hospitals) and the medical groups (Permanente Medical Groups) although there are numerous non-profits that make up the entire organization. The focus of this post is on the executive compensation reported on the Form 990 of the Kaiser Foundation Health Plan, Inc. because this organization reports the paid compensation for the key executives including the Chairman and CEO (as opposed to a related organization reporting compensation from a related organization).

The most recent IRS Form 990 available is for 2016.  The 76 employees listed below were compensated approximately $80 million:

  1. $10,039,235:  Bernard Tyson, Chairman and CEO
  2. $ 5,345,394:  Donna Lynne, EVP, GP and Reg President Colorado
  3. $ 3,269,827:  Kathryn Lancaster, EVP and CFO
  4. $ 3,240,051:  Arthur Southam, EVP, Health Plan Operations
  5. $ 3,145,675:  Gregory Adams, EVP and Group President
  6. $ 2,536,195:  Benjamin Chu, EVP, GP and Region President, Southern Cal
  7. $ 2,174,175:   Richard Daniels, EVP, CIO
  8. $ 2,013,298:  Wade Overgaard, SVP, Health Plan Options, California
  9. $ 2,000,147:  Mark Zemelman, SVP, General Counsel and Secretary
  10. $ 1,964,489:  Charles Columbus, SVP, Chief HR Officer
  11. $ 1,775,534:  Janet Liang, Regional President, Northern Cal
  12. $ 1,516,914:  Michael Rowe, SVP, CFO, Northern Cal
  13. $ 1,417,283:  Patrick Courneya, EVP, Chief Medical Officer
  14. $ 1,362,490:  Charles Bevilacqua, SVP, HP Products, Svc and Admin
  15. $ 1,362,081:  Raymond Baxter, SVP, CB Research and Health Policy
  16. $ 1,349,152:  Cesar Villalpando, SVP, Enterprise Shared Svcs
  17. $1,345,769:  Anthony Barrueta, SVP, Government Relations
  18. $ 1,307,872:  Julie MillerPhipps, Regional President Southern Cal
  19. $ 1,304,076:  George Disalvo, SVP, CFO – Southern Cal
  20. $ 1,279,544:  Mary Ann Barnes, Region President, Hawaii
  21. $ 1,278,137:  Paul M Swenson, SVP and Chief Strategy Officer
  22. $ 1,189,582:  Thomas Meier, SVP, Corporate Treasurer
  23. $ 1,152,155:  Donald Orndoff, SVP, NFS
  24. $ 1,142,726:  Gerald McCall, SVP, Operations
  25. $ 1,139,765:  Daniel Garcia, SVP, Chief Compliance Officer
  26. $ 1,097,295:  Debora Lynn Catsavas, SVP, HR – Northern Cal
  27. $ 1,088,899:  Thomas Curtin, SVP, National Sales and Acct Mgmnt
  28. $ 1,038,266:  Dennis L Dabney, SVP, Labor Relations
  29. $ 1,033,498:  James Simpson, SVP, Finance BU and ROC
  30. $ 1,005,143:  Ron Groepper, SVP and Area Manager
  31. $   987,275:  Robert Beltch, Chief Audit Executive
  32. $   984,380:  Mick Diede, SVP, Chief Actuary
  33. $   977,584:  Gay Westfall, SVP, Special Projects
  34. $   957,024:  Christine Paige, SVP, Marketing and Internet Services
  35. $   850,483:  Christopher Ohman, VP Health Plan Expansion
  36. $   839,577:  John Yamamoto, Assistant Secretary
  37. $   810,291:  Vanessa Benavides, SVP, Chief Comp and Priv Officer
  38. $   777,360:  Laurel Junk, VP, Chief Procurement Officer
  39. $   738,759:  Sandra Golze, Asst Secretary, Northern Cal
  40. $   724,926:  Alfonse Upshaw, SVP, Corp Controller and CAO
  41. $   583,277:  Jerry C Fleming, SVP, Health Reform Implement
  42. $   551,494:  Wayne Swafford, VP, National Facilities Svc – ROC
  43. $   513,713:  Thomas W Chapman, EDD, Director
  44. $   507,864:  Deborah Stokes, SVP, Corp Controller and CAO
  45. $   494,836:  Bechara Choucair, SVP, Community Health and Benefits
  46. $   452,348:  David Kvancz,  VP, National Pharmacy Programs and Services
  47. $   450,014:  Kendall Hunter, SVP, Health Ins Exchange Opns
  48. $   435,112:  Frank Richardson, Ass’t Secretary, Hawaii
  49. $   431,277:  Hong-Sze-Yu, Assistant Secretary
  50. $   429,022:  Carlos Zaragoza, Assistant Secretary
  51. $   392,460:  Rochelle Roth, Assistant Secretary
  52. $   365,977:  Karen Emmons, VP, Research and Dir KFRI
  53. $   353,210:  Jacqueline Sellers, Asst Secretary
  54. $   247,358:  Margaret E Porfido, Director
  55. $   244,739:  Edward Pei, Director
  56. $   240,707:  Judith A Johansen, Director
  57. $   229,371:   Phillip A Manneau, Director
  58. $   225,809:  David Hoffmeister, Director
  59. $   218,511:  Victoria Zatkin, VP, Off of Board and Corp Gov Svcs
  60. $   216,547:  Kim J Kaiser, Director
  61. $   215,118:  Leslie S Heiz, Director
  62. $   223,809:  Cynthia A Telles, Director
  63. $   212,000:  Richard Shannon, Director
  64. $   206,871:  Jeffrey E Epstein, Director
  65. $   199,780:  Maryann Bodayle, Ass’t Secretary
  66. $   197,178:  Regina M Benjamin, MD, Director
  67. $   186,626:  Eugene Washington, Director
  68. $   162,307:  Diane Gage-Lofgren, SVP, Brand Mgmnt and Comm
  69. $   156,270:  Mitchell Goodstein, SVP, Actuarial, U/W and Pricing
  70. $   155,756: Cynthia Overmyer, SVP, Internal Audit
  71. $   154,247:  Jed Weissberg, SVP, Quality and Care Del Excel
  72. $   152,591:  Ramon F Baez, Director
  73. $   142,478:  Herman Weil, SVP, Federal and State Programs
  74. $    46,000:  Neil Purcell, Director
  75. $    41,378:   George Halvorson, Chairman
  76. $    27,039:  Eugene Grisby, III, Director

50 of the 76 (66%) of the most highly compensated employees are male while 26 (34%) are female.  It is important to note that a large portion of the bottom third of the list includes compensation for directors of the organization. So, if we look at the 50 most highly compensated individuals, 36 of the 50 (72%) are male, while 14 (28%) are female. 8 of the 10 most highly compensated employees are male while 2 are female.

The Form 990 also reports:

  • First class or charter travel was paid for by the organization. According to the 990 “first class travel is permissible as an ordinary business expense for all Board of Directors, Chief Executive Officers, 13 other officers, and one key employee…”
  • Travel for companions was paid for by the organization, “as approved by senior management infrequently..”
  • The CEO’s non business transportation is included in compensation tax indemnification and gross cup payments.
  • Limited to partial gross up payments under relocation policy along with CEO’s transportation and security was paid for by the orgnaization.
  • A housing allowance wa provided on a limited basis to four officers and one key employee for relocation.
  • Robert Belch was provided a $100,000 loan for relocation. The balance due is $100,000.

To read the IRS Form 990 (2016), click here.

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